Chargeback time limits are deadlines set by card networks for when a chargeback can be initiated and responded to. The timeframes vary based on chargeback reason code and card brand (Mastercard, Visa, etc.).
Cardholders typically have 60 to 120 days from the transaction date to file a chargeback. Merchants usually have 7 to 30 days to respond with evidence, depending on the network and acquirer. Missing these deadlines can result in an automatic and irreversible loss, forfeited revenue, and potential fines.
Tracking these deadlines is essential to protecting your revenue, preserving your reputation with acquirers, and avoiding unnecessary fees. AltoPay’s automated technology makes it easy to respond to chargebacks within the set time limit. We automatically monitor open disputes and can keep your team informed of time-sensitive tasks.
A deep dive into chargeback time limits
Chargeback time limits regulate two different actions:
- How long a cardholder can wait to file a chargeback
- How soon you need to respond to a chargeback
Let’s take a closer look at both.
CARDHOLDER CHARGEBACK TIME LIMIT
How long a cardholder can wait to file a chargeback
How many days can pass between the transaction processing date and the chargeback date?
Most chargebacks have a 75, 90, or 120 day time limit.
Cardholder time limits are impacted by three things:
- The start date
- The reason for filing the chargeback
- The card brand (Mastercard, Visa) that is involved
Most chargeback time limits start on the day the transaction was processed. However, there are a few situations where the clock doesn’t start until several days or even months later.
For example, if ongoing services are terminated, the chargeback must be filed within 120 days of the last service date — but not more than 540 days from the original transaction processing date. Or if delivery happens at a much later date — for example, you sell made-to-order furniture — the dispute has to be filed within 120 days of the expected delivery date.
Chargebacks resulting from technical mistakes — like processing errors or failing to request authorization — are usually processed pretty quickly. The bank — not the cardholder — is responsible for filing these chargebacks, and the bank’s technology can automatically flag issues.
Cardholder disputes — like merchandise not received — and fraud have a longer time line. The card brands want to give their customers ample opportunities to detect and report issues.
Each chargeback reason code has its own time limit. And each card brand has its own list of reason codes.
Here is a high-level overview of time limits by reason codes.
Mastercard chargeback time limits
According to the most recent version of the Mastercard rules, these are the chargeback time limits:
- 4808 – Authorization-Related Chargeback: 90 days
- 4834 – Point-of-Interaction Error: 90 days
- 4837 – No Cardholder Authorization: 120 days
- 4849 – Questionable Merchant Activity: 120 days
- 4853 – Cardholder Dispute: 120 days
- 4870 – Chip Liability Shift: 120 days
- 4871 – Chip Liability Shift – Lost/Stolen/Never Received: 120 days
Visa chargeback time limits
According to the most recent version of the Visa rules, these are the chargeback time limits:
- 10.1 – EMV Liability Shift Counterfeit Fraud: 120 days
- 10.2 – EMV Liability Shift Non-Counterfeit Fraud: 120 days
- 10.3 – Other Fraud – Card-Present Environment: 120 days
- 10.4 – Other Fraud – Card-Absent Environment: 120 days
- 10.5 – Visa Fraud Monitoring Program: 120 days
- 11.1 – Card Recovery Bulletin: 75 days
- 11.2 – Declined Authorization: 75 days
- 11.3 – No Authorization: 75 days
- 12.2 – Incorrect Transaction Code: 120 days
- 12.3 – Incorrect Currency: 120 days
- 12.4 – Incorrect Account Number: 120 days
- 12.5 – Incorrect Amount: 120 days
- 12.6 – Duplicate Processing/Paid by Other Means: 120 days
- 12.7 – Invalid Data: 75 days
- 13.1 – Merchandise/Services Not Received: 120 days
- 13.2 – Canceled Recurring Transaction: 120 days
- 13.3 – Not as Described or Defective Merchandise/Services: 120 days
- 13.4 – Counterfeit Merchandise: 120 days
- 13.5 – Misrepresentation: 120 days
- 13.6 – Credit Not Processed: 120 days
- 13.7 – Canceled Merchandise/Services: 120 days
- 13.8 – Original Credit Transaction Not Accepted: 120 days
- 13.9 – Non-Receipt of Cash or Load Transaction Value: 120 days
It’s important to note that these are generalities. There are some situations where timelines may be extended.
Other considerations to note:
- These timelines are for initiating chargebacks. After the chargeback has been filed, a notice has to be sent to your acquirer — which will eventually be sent to you. Just because you haven’t received a chargeback by day 120 doesn’t mean there won’t be one coming.
- Payment processing doesn’t have a universal language. Some card brands have unique or unusual names for things. For example, Mastercard time lines are based on the “central site business date” — which is just a fancy way of saying the day the transaction was processed.
- Discover and American Express policies differ from Mastercard and Visa. For example, if a card is issued by American Express or Discover directly, then there isn’t a chargeback filing deadline for the cardholder.
ACQUIRER CHARGEBACK TIME LIMIT
How soon you need to respond to a chargeback
If a chargeback is invalid, you have the right to challenge it and attempt to recover revenue that was unfairly sacrificed. Here’s how quickly chargeback responses must be submitted.
Responses for Mastercard chargebacks must be submitted within 45 days of the chargeback filing date.
Responses for Visa chargebacks must be submitted within 30 days of the chargeback filing date.
Responses for Mastercard chargebacks must be submitted within 45 days of the chargeback filing date.
Responses for Visa chargebacks must be submitted within 30 days of the chargeback filing date.
It is important to note that the card brands set time limits for acquirers. And then acquirers set time limits for merchants.
Several days at both the beginning and end of that 30-45 day window are used by the acquirer to complete administrative tasks – leaving you, the merchant, very little time to compile and submit your response.
Timelines can vary by acquirer. We’ve seen everything from 3 days to 20 days.
If revenue recovery is part of your chargeback management strategy, make sure you understand your acquirer’s time limits. Submitting a response after the expiration date is an automatic loss.
Need help managing chargeback time limits?
If you are struggling to manage chargeback time limits, AltoShield technology can help. We provide detailed reporting so you understand what is happening with your business and advanced automation to simplify response workflows.
